WBCS.LIVE practice question

Regarding the Monetary Policy Committee (MPC), which of the following is correct? 1. It is a six-member body headed by the Finance Minister. 2. It decides the benchmark policy interest rate (Repo Rate).

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only 1
  2. Only 2
  3. Both 1 and 2
  4. Neither 1 nor 2

Correct answer and explanation

Correct answer: Only 2

Explanation: āœ… Correct Answer: B) Only 2 šŸ“š Explanation: The Monetary Policy Committee is a six-member body, but it is headed by the Governor of the Reserve Bank of India, not the Finance Minister. Its primary mandate is to decide the benchmark policy rate (Repo Rate) required to contain inflation within the specified target level. It meets at least four times a year and publishes its decisions after every meeting.